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2014 (1) TMI 199 - CESTAT NEW DELHIDemand of service tax - Assessee are franchises of M/s. BSNL for sale of their SIM cards and recharge coupons - Demand u/s 65(105)(zzb) for Business Auxiliary Services - BSNL already paid entire service tax on full amount including the commission amount earned by them - Assessee contends that confirmation of service tax again on the value of commission would amount to double taxation - Revenue contends that payment of service tax by BSNL was under the category of ‘telecommunication services’ whereas the demand against the respondents was under the category of BAS - Held that:- apart from Board’s Circular laying down that to avoid double taxation, payment of service tax by the principal should be taken into account while settling the responsibility of franchise - where the principal has already paid service tax on the full value of the SIM cards, franchise cannot be called upon to pay tax again on the same transaction on the ground that his activity is separately liable to service tax under the category of BAS - Inasmuch as there is no dispute about the fact of payment of entire service tax by BSNL on the full value of SIM cards/recharge coupons, we are of the view that Commissioner (Appeals) has rightly set aside the confirmation of demand - Following decision of South East Corporation reported in [2007 (5) TMI 111 - CESTAT, BANGALORE], Chetan Traders reported as [2008 (7) TMI 46 - CESTAT, NEW DELHI] and in the case of Karakkattu Communications reported as [2007 (6) TMI 209 - CESTAT, BANGALORE] - Decided against Revenue.
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